Yanghua and other panel components returned to Taiwan

The "red supply chain" has impacted the electronics industry. Under the swashbuckling competition, the impact on touch panels and panel components has been greatest. Many manufacturers have turned off the mainland factories and returned to Taiwan. According to statistics, Yanghua, Interface, and Yuecheng have all announced that they will close their factories in the mainland and indirectly withdraw from the mainland market. The small and medium sized light guide plate factory, Xiang Xiang, also announced the dissolution and liquidation of the Suzhou plant. It will list the related assets for impairment in the fourth quarter of last year, amounting to approximately RMB 184 million.

Last year, the touch panel industry was catastrophic. Since the irrational quotation competition has not yet ended, the camp profitability has dropped sharply. The revenue of the touch panel maker Yanghua and the interface in 2015 decreased by 57% compared to the previous year. A huge loss occurred.

Yang Hua said that the focus of operations in the past year has been on streamlining and reducing costs. In the future, the focus of production will be on Vietnam and Taiwan, and the Huizhou plant will be shut down and liquidated. The Hunan plant of the interface was discontinued at the end of last year. This year it announced that Taiwan’s parent company will cut into the Hunan factory to avoid dragging down the parent company. At the same time, it plans to sell Hunan factory related assets. The Taiwan factory will fully sprint on the metal mesh touch panel to survive.

As for glass processing and protection of glass manufacturers, they also face strong challenges. At the end of last year, F&M announced that it would sell the Fuzhou plant to China Glass Thinning Plant Huajing. It is estimated that the loss will be approximately RMB 117 million. The future products will be mainly high-end panels with more than five generations of production, and production will also be concentrated at the Taiwan plant.